By Christie U. Omonigho
- Binding agreement to merge onshore renewable activities in nine countries across Asia
- Each company will contribute assets of comparable value totaling 3 GW of operational capacity and 6 GW under advanced development
- Abu Dhabi-headquartered platform positions partners to capture Asia’s growing electricity demand
Energy Window International (Media) – TotalEnergies said that it has signed a binding agreement to establish a $2.2bn 50/50 joint venture (JV) that will merge their onshore renewable activities in the nine countries across Asia with Abu Dhabi Future Energy Company PJSC – Masdar, described as a global clean energy leader.
TotalEnergies said the partnership would bring together capital and expertise to deliver renewable energy across Asia where electricity demand is soaring high by the day, Adding that as soon as the transaction is brought to a close, the JV will act as both companies’ sole vehicle for developing, building, owning and operating onshore solar, wind and battery storage projects in paces like Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea and Uzbekistan.
TotalEnergies in its email statement said that the JV would have a portfolio capacity of 3 GW of operational assets and 6 GW of assets in advanced development which would be operational by 2030. Each partner will contribute assets of comparable value.
Dr, Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar said: “The UAE has established itself as a global energy leader by delivering at scale, investing with conviction, and building partnerships that endure. Masdar epitomizes that approach. We are proud to have pioneered renewable energy deployment in Central Asia and the Caucuses, and we have an expanding portfolio in some of the most attractive growth markets in Asia-Pacific. Asia will be the main driver of global electricity demand growth this decade, and this collaboration with TotalEnergies will accelerate our progress across the continent, unlocking new opportunities to deliver the competitive, reliable energy solutions that our partners and customers need.”
“We are delighted with the signing of this agreement with Masdar, which brings together two major renewable players to build a renewable champion in Asia. It will allow us to combine the strengths of our two companies to secure significant positions in these markets and create more value than if we were acting alone. This agreement is fully in line with the renewable energy strategy of our Integrated Power business. We are also pleased to further deepen, in this area, the long-standing relationship between the United Arab Emirates and TotalEnergies”, Patrick Pouyanné, Chairman and CEO of TotalEnergies said.
“This joint venture reinforces Abu Dhabi’s status as a global center for energy leadership, combining the expertise of Masdar and TotalEnergies to drive renewable energy deployment across Asia. For Masdar, this JV strengthens and diversifies our portfolio, unlocking new opportunities in attractive, high-growth markets, while bringing in a like-minded partner to accelerate growth and deliver additional value in our existing markets”, says Mohamed Jameel Al Ramahi, CEO of Masdar.
The JV which the French company said would be headquartered in Abu Dhabi Global Market (ADGM), is also expected to employ around 200 staff from both companies, with the management team to be announced at a future date. The agreement however, TotalEnergies says, is still contingent on regulatory approvals and conditions.
